11. Agency’s and executive officers’ obligation to supervise
The holder of an agency licence and the agency’s executive officer are responsible for the discipline of the licence holders who represent them and for ensuring that they act in accordance with the law.
They must ensure compliance with the requirements governing the issuance and maintenance of brokers’ licences, for as long as licensees carry out their activities on behalf of the agency, by putting the following measures in place:
- Analyze the practices and activities to identify any that may be non-compliant;
- Establish clear principles and standards to avoid, for instance, having brokerage acts carried out by individuals who do not hold a valid licence. These must be reviewed frequently.
- Ensure that licensee practices and activities are consistent with established principles and standards.
The holder of an agency licence and the agency’s executive officer must develop, implement and enforce policies and procedures regarding the issuance and maintenance of licences as well as the ceasing of activities of the agency’s brokers. These policies and procedures must include the following elements:
- An adequate and continuous supervision process for:
- completion of the Mandatory Continuing Education Program by brokers and annual updating of their information and photo with the OACIQ;
- adherence by brokers to the field of practice for which they are licenced;
- adherence by brokers to any conditions or restrictions imposed on their licence pursuant to a decision by the Licence Issue and Maintenance Committee (LIMC);
- compliance with a broker’s commitment to complete one or more training requirements;
- compliance with the requirements for carrying on activities within a business corporation;
- A procedure outlining all the steps to follow when a broker starts or stops acting on behalf of the agency;
- Internal controls to ensure compliance with policies and procedures, such as random or risk-based reviews of client records and licensee practices, including in case of licence suspension:
- withdrawal of all advertising;
- ceasing of all brokerage activities;
- appointment of a replacement or contract termination.